Padded balance sheet to help Penguin International ride out choppy waves

SINGAPORE (June 18): CGS-CIMB Research is reiterating its “add” recommendation on Penguin International but with a lowered target price of 55 cents from 81.5 cents previously.

Despite Covid-19 and low oil prices affecting the company, it has not seen any cancellations in contracts. Penguin also has a stronger balance sheet and more diversified portfolio, as compared to the last oil price crisis back in 2014-2016.

In a Wednesday report, analyst Cezzane See says, “We still like Penguin for its net cash position, which will help it ride out these tough times, and its more diversified build-to-order (BTO) and chartering portfolio, which we deem makes Penguin a less risky investment now, compared with during the last oil price crisis.”